According to blockchain security analysts, the developers of the Safereum project suddenly sold more than 700 ETH worth of its native token, sending the price of SAFEREUM plummeting by more than 90%.
š§æ SAFEREUM was rug-pulled with more than 730 ETH.
š§æ One of the main promoters of the scam was cryptocurrency influencer āSlumDOGE Millionaire.
š§æ At press time, SAFEREUM was worth $0.0000007193 after its price plummeted by over 95% in the past day.
According to blockchain security firm CertiK and other analysts, the developers of Safereum ā using the token deployment address āsafereum.ethā ā unlocked the supply of the token and dumped more than 600 EtherĀ worth of its holdings, causing the price of the Safereum (SAFEREUM) token to plunge more than 94%.
The so-called rug pull came after the team finalized a fund raise of approximately $600,000 for a derivative token called āSafepad.ā These funds are understood to have constituted part of the total stolen sum, which totaled roughly 720 ETH, worth $1.27 million at current prices.
ā¶ļø Event Summary
Following the deployment of Safereum, on 02 October 22:24:47 safereum.ethĀ lockedĀ 100 billion SAFEREUM tokens via PinkLock with an unlock time set to 22:25:00 (13 seconds).
The tokens remained untouched until 22 October when safereum.eth unlocked the tokens and sent 4.5 billion SAFEREUM to KuCoin. 95 billion tokens were thenĀ relockedĀ following the same process above, locked at 20:37:47 UTC with the time again set to 13 seconds.
On 23 October Safereum had a FairLaunch for SafePad with a soft cap of 20 ETH. By the end of the 12 hour presale, Safereum had raised 755.3389161 ETH (~$1,382,894).
safereum.eth called āFinalizeā and split the SafePad presale funds as follows:
14.37 ETH to 0x4B0
21.13 ETH to 0x498 ERC1967Proxy
334.83 ETH to 0x67c (safereum.eth)
348.49 ETH added to the liquidity pool
Additionally, the LP tokens were locked for one year in the Pink Lock contract meaning that the remaining funds within the SAFEPAD liquidity pool are still at risk.
The exit scam occurred on October, 23 and impacted both the SAFEPAD and SAFEREUM tokens. Safereum.eth initially received 800 billion SAFEPAD tokens from the token deployer, with approximately 683.9 billion tokens locked in the tokes presale contract. This left safereum.eth with approximately 116 billion SAFEPAD tokens left in the wallet which were sold along with unlocked SAFEREUM tokens. Coupled with the stolen ETH that was transferred to safereum.eth the total loss amounts to 766.98 ETH (approximately $1.3 million).
As stated above, approximately 110 WETH remains in the SAFEPAD 3 liquidity pool and which is worth approximately $197,000 at the time of writing. These funds are at risk once the LP tokens unlock.
The stolen ETH was then distributed as follows:
Thirteen wallets were sent 45 ETH each (585 ETH) which then bridged the funds via fixed float.
0x01Ee received 3 ETH.
0xa220 received 25 ETH.
A little under $200,000 worth of ETH was swapped for USDT and split into three wallets which then bridged the funds via fixed float.
š¢ What HappenedĀ :
Ā
1)Ā The team of #safereum launched a successful presale raising 300 ETH. They had team tokens vested for 14 days, so they decided to wait it out until the tokens got fully unlocked. Ā
2)Ā They started another project as part of the same ecosystem called Safepad. They timed the unlock of the Safereum tokens together with the launch of Safepad. They raised 700ETH and shortly after liquidity was added they sold both team tokens dropping the price dramatically. Ā
3)Ā How was it possible since the project was audited: The team scammed by selling their native tokens, and there was no contract exploit involved, which is the purpose of the audit. An audited project means that it's highly unlikely to be exploited via the smart contract. Ā
4)Ā A KYCed project means that if the team exit scams, there is information about team members and a path for authorities to follow. Ā
5)Ā Where did the money go: The money is already distributed to multiple wallets. Screenshot below shows the transactions distributing the money to new wallets as a way to avoid tracking. We are tracking on-chain the money flow and will report their wallets to Central Exchanges.
ā”ļø SAFEREUM INCIDENT :
Safereum project launched a presale, raising 300 ETH.
Team tokens were vested for 14 days, preventing immediate sales.
The project introduced Safepad, a new project in the same ecosystem.
The team coordinated the Safereum token unlock with Safepad's launch.
The team raised a significant sum of 700 ETH during this event.
Liquidity was added, and both Safereum and Safepad tokens were available.
The team executed an exit scam by selling their team tokens.
This move dramatically reduced the token's price, causing a significant drop.
Importantly, the scam didn't involve a contract exploit, making it challenging to predict via a standard audit.
A KYC (Know Your Customer) process for projects is critical as it provides information about team members and aids authorities in tracking them.
The scammers distributed the stolen funds across multiple wallets to evade detection.
ā ļø Crypto influencers promoting scams without check:
The scam brought attention to crypto influencers promoting āshill coinsā without any diligent checks.
Blockchain sleuth ZachXBT underlined the role of a leading anonymous influencer on X who officially promoted the Safereum project. The user had promoted similar scam projects earlier as well.
Another X user criticized a leading handle with a significant follower count for promoting such scams to deceive their followers.
